"I know how to approach building from a theoretical basis and I know it from a practical viewpoint. I've seen plenty of construction problems or potential ones over the many years I've been building. My brother and I have yet to be stumped." -- Rick Macek

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Estimating the Cost Per Square Foot for a Custom Built Home or Remodel

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Published: 15 May 2013

https://macekcustombuilders.com

You can't expect a custom home builder to give a cost per square foot quote for building your new custom home without allowing them to do the necessary due diligence first!

Due Diligence - This involves a careful review of blueprints for the home, defining the building materials list, identifying the features desired by the home buyers, and all of the labor costs, plus the builders mark-up.

Home Size - When building a home, it's best to work with even numbers. Have your home size rounded up or down to increments of two feet. This reduces wasted materials. Also, it's most economical to build a home which is no deeper than 32 feet. If the depth exceeds 32 feet, then your roof framing materials may need to be specially designed and will be more expensive.

Also, keep in mind that the cost per square foot for building a smaller him can often be higher than that of a larger home because the the cost of expensive items (such as a furnace or kitchen cabinets) are spread over more square footage. Consequently, a larger home may have a lower square footage cost than a smaller home. Also, it usually costs less to build a two-story home when compared to a one-story home that has the same square footage. This is because a two-story home will have a smaller roof and foundation in comparison. Plumbing and ventilation are more compact in two-story homes as well.

Building Materials - The cost of building materials fluctuates with material shortages, such as wood for framing the structure. A good builder will factor some of this in, but cannot always determine the factors that impact material costs, thereby increasing the final cost of a home.

Some Features Cost More - Cost per square foot pricing can easily increase depending on the home features selected by the client. Some of the most expensive areas in a home are usually the bathrooms and the kitchen. The number of windows and the size and quality of windows can also affect the cost. Vaulted ceilings and high roof pitches can increase the cost of a home. The type of heating and cooling systems installed in the home can vary greatly depending on the clients selection of a furnace, heat pump, air conditioning units and the electrical, zone ducting and controls installed for the units.

Architecture of the Home - If it is not a simple rectangular design and has more angles and corners that the cost of building home can increase the amount of labor and materials needed to build.

Site Preparation - Preparing a site for construction can have a big impact on the cost of a home. Building on a flat lot will usually cost less. If the builder has to haul in lots of dirt, do a lot of grading, clear trees, or blast through large rocks, then site preparations will become more expensive and add to the final cost of the home.

Exterior Elements - Cost per square foot estimates sometimes exclude external elements such as utility hookups, patios/decks, irrigation, driveways, sidewalks and landscaping around the property. By working with the builder you can make sure that they are included in the price estimate.

Cost Overruns - It is not unusual for the finished cost of a home to be more then the original bid price. Cost overruns can occur from a client overspending on the allowances, making changes during construction, or from the builder encountering unforeseen problems (primarily in remodeling). Proper planning can greatly reduce cost overruns. It is a good rule of thumb to allow an additional 10% to cover unexpected costs associated usually with client requested upgrades above and beyond the original contracted scope of work. However, with detailed plans and specifications established before the build, and client finish materials, a 10% contingency fund can be further reduced.

Experience Counts - A highly experienced and reliable custom home builder will work diligently to identify all of the costs and establish allowances for building your dream home. He will share the material costs list and help identify any potential areas for cost overruns and before and during the building process.